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Naples Real Estate News 03/10/08

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JUMBO LOANS – The federal government’s economic stimulus package was supposed to breathe new life into real estate sales by making jumbo loans more affordable. But while that may work in San Francisco, Floridians have discovered that jumbo loan limits have not increased as much as was originally thought. The jumbo loan limits are calculated at 125% of the area’s median sold price. In the Naples area the price is $531,250, for the Bonita Springs and Estero areas $417,000.

REAL ESTATE TAX REFORM – The state commission that has the power to put amendments on property taxes in front of voters in November has 51 ideas waiting for a vote – and one problem: committee members who aren’t showing up. On Friday, the committee canceled debate on proposed constitutional amendments because not enough members attended.

GREAT TIME TO BUY – Intrepid home shoppers are venturing back into some of the nation’s hardest-hit real estate markets in Florida and elsewhere, convinced they can cherry-pick good deals amid broad price declines. At various meetings at the Naples Area Board of Realtors many Realtors are noting an increase in showings and greater interest from investors. Market reports for Naples, Bonita Springs and Estero support this as the number of pending sales during the month of February are greater than those in 2007 and 2006. The selection of residence are numerous while prices are greatly lower than they were in 2005 – the high point for prices paid in the southwest Florida area.

COUNTRYWIDE – Federal authorities are investigating Countrywide Financial Corp. for securities fraud, according to several media reports. The Federal Bureau of Investigation is in the early stages of an inquiry into whether company officials misrepresented its financial position and quality of mortgage loans, according to The Wall Street Journal, while the New York Times reports that the U.S. Justice Department is also involved.

FORECLOSURES – Florida lawmakers want to help protect down-on-their-luck homeowners from unscrupulous business people. The Foreclosure Fraud Prevention Act, which outlines what can and can’t be done when homeowners consider foreclosure prevention arrangements, cleared a House committee last week.

Filed Under: Real Estate News

Bonita Springs Condo Market Update February 08

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The condominium market in the Bonita Springs is showing the subtle changes similar to the Naples market, as the number of condos being put on the market are decreasing from previous years and pending sales increasing from the same month in the two previous calendar years.

New Listings: During the month of February 154 Bonita Springs condos were placed on the market. In 2007, 203 units were listed and 274 in 2006. February was the third consecutive month where the number of new listings was less than the same month in previous years. When the number of new listings coming on the market is declining it is a sign of a subtle change in the real estate market. An improvement in a real estate market starts with the new listings, as it is the start of the natural real estate cycle. The absorption rate for new listings is 5.7 versus 6.2 and 8.3 in 2007 and 2006 respectively. The absorption rate represents an approximate timeframe for new listings to sell within. A balanced market is usually around 6.0 months. When the rate dips below 6.0, it favors sellers, while above 6.0, it favors buyers.

Pending Sales: 62 condominiums in Bonita Springs went under contract during February. This compares favorably with the 52 in 2007 and 60 units in 2006. The pending sales in January were 43, and 20 in December. Pending sales leading to future closed sales within a 30 to 60 day period from the date when a contract is mutually agreed to by both the buyer and seller. When pending sales increase, eventually the increase will be seen in the number of closed sales.

Closed sales: In the month of February, 27 condos were sold, compared to 33 condos in both 2007 and 2006. In January 25 were closed, while in December a total of 26 condominiums closed.

Median Prices: The median price paid for a condominium in Bonita Springs during February was $322,000. In a year over year analysis this represents a decrease of about 6.7% from $345,000 in 2007 and cumulative decrease of 33.5% from 2006’s median price of $430,000. 

Filed Under: Bonita Springs Condos, Bonita Springs Florida Real Estate, Bonita Springs Market Update, Real Estate News

Bonita Springs Home Market Update Feb 08

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The Bonita Springs real estate market update continues to show subtle but positive signs of improvement as the number of homes coming on the market for sale are less than in the immediate previous two years and more homes were sold in 2008 than in 2007.

New Listings: During February 2008 a total of 136 Bonita Springs single family homes were listed for sale. The February 2008 reflects a reduction of new listings coming on the market from 193 homes in 2007 and 213 homes in 2006. The absorption rate for the new listings is 4.4 months, lower than 6.7 in 2007 and 5.5 in 2006. The lower absorption rate generally the faster homes are apt to sell. The lower number of listings this year compared to previous years represents a strengthening within the Bonita Springs real estate market for homes.

Pending Sales: During the month of February, 50 homes went under a sales contract. In previous years 59 homes were pending sale during the month of February. Pending sales for homes in Naples and Estero saw an increase over 2007.

Median Sold Price: The median sold price for a single family home in Bonita Springs was $450,000, which was a reduction of about 25% from the 2007 median price of $600,000 and about 24.3% from the median price of $595,000 for sold homes in 2006.

Closed Sales: During February, 31 homes were sold versus 29 in 2007 and 39 in 2006.

Currently, 1201 homes are available for sale in Bonita Springs or about 33 months of inventory based upon the average monthly closed sales over the immediate past 12 months. 

Filed Under: Bonita Springs Homes, Bonita Springs Market Update, Real Estate News

Naples Condo Market Update February 08

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The February Naples condo market update reflects signs of the market strengthening as less condos are coming on the market, and pending sales increased over 2007 and 2006. These are subtle signs of changes taking place in the market and does bear watching by those thinking about purchasing a condominium residence.

New Listings: During February 2008 a total of 689 Naples condos came on the market. This was a decrease from of 163 (19.1%) from the same period of last year where 852 condos were listed for sale. February listings reflected a decrease of 445 (39.2%) units from February 2006 listings of 1,134. The reduction of the number of new listings coming on the market represents a strengthening of the Naples condominium market, as fewer units are coming on the market, which will eventually reflect an overall reduction in condominiums for sale. The absorption rate for new listings in February equates to 5.5 months. The 5.5 months represents a reduction from 5.8 months in 2007 and 7.0 months in 2006. For those considering purchasing a condominium, they should step-up their search to focus on the neighborhoods or communities they desire to purchase in.

Pending Sales: During the month of February 257 condominiums in Naples had accepted offers to purchase. The volume of pending sales is greater than the 232 in 2007 and 236 in 2006. This does represent a greater buyer interest in the Naples condo market, as values are being seen in the market and buyer confidence returning. Pending sales over a period of 30 to 60 days become closed sales – expect to see an increase of closed sales in future months.

Median Sold Price: The median price paid for a condo in Naples was $312,000 which is a decrease of 10.9% in February 2007 and cumulative decrease of 17.9% since 2006. The decrease in the median price reflects the higher number of pending sales as more buyers are finding values in the Naples market.

Closed sales: The number of closed Naples condos in February were 125, versus 147 and 161 in the same month of 2007 and 2006, respectively. The reduction of liberal loan programs starting in August 2007, could be reflected by the lower closed sales for this February.

The number of months of Naples condos currently for sale numbers approximately 5,582 units or about 37 months of inventory.

Filed Under: Naples Condos, Naples Market Update, Real Estate News

Naples Home Market Update February 08

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Some positive signs are continuing to show in the Naples single family home market, but it still remains a buyer’s market. Through out the month March additional commentary, neighborhood or community specific will be posted to better inform both buyers and sellers.

New Listings: In the month of February a total of 887 Naples homes were listed for sale, which down from February 2007 new listings of 993 and February 2006 figure of 1137. The absorption rate of new listings for the February listings is 8.3 months which higher than in previous February’s rates of 6.8 and 6.2 in 2007 and 2006, respectively. The new listings with the lower volume, represents the situation where as less homes on the market the greater the reduction in the number of months of existing inventory of homes for sale. Generally an absorption rate of 6.0 months represents a balanced market between both buyers and sellers of real estate. The new listings for January were 1,127 homes and in December 629.

Pending Sales: During February 2008, 231 Naples homes had offers that were accepted, therefore they are pended sales. Pending sales represents the future closed sales.  Pending sales generally close between 30 and 60 days after a contract has been agreed upon. The 231 homes pending sale, is an improvement over 2007 when 219 homes were pending sale. In 2006, the figure was 292. The improvement over 2007 is positive as the number of liberal loan programs available in 2008 are less than in 2007. February pending sales represents the first month in the most recent three months where pending sales have actually shown an increase in absolute numbers. The pending sales in January was 195 and in December 146.

Median Price Paid: The median price for a Naples home in February was $425,000. In 2007 the median price was $445,000 and in 2006 the price was $465,000. Year over year decrease in price was 4.5%. Cumulative price decrease since 2006 is 8.6%.

Closed Sales: The number of closed sales in February 2008 for Naples homes was 107, down from the previous year’s 147 and 2006’s 182.

The inventory of homes presently for sale is 6,186, which represents 38 months of inventory available.

The Naples real estate market still remains a buyers market for selection and price. If the new listings continues to decrease from previous years and pending sales continue to increase over previous years, then the market may have reached the bottom in terms of volumes. The bottom of the market for prices, may have not been achieved at this time, as the inventory of home for sales continues at high level.

Filed Under: Naples Homes, Naples Market Update, Real Estate News
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